Promissory Note / IOU
- Fee
- ₹4,999
- Turnaround
- 1 day
What this is
A promissory note or IOU - a short, signed and unconditional promise to pay a stated sum to a named person on demand or on a fixed date, with interest if agreed - the simplest way to document money lent between individuals or small businesses. Our panel advocate drafts and reviews the note and delivers it signed on letterhead; it must then be executed on stamp paper or with the revenue stamp your state requires, which we explain.
What you get
A promissory note drafted, reviewed and signed by our panel advocate on letterhead, in the form the Negotiable Instruments Act requires - the unconditional promise, the sum, the payee, on demand or on the fixed date, interest, place of payment, and the maker's signature block with witness where advised - together with a receipt for the money and a short note on the stamp duty for promissory notes in your state and on the three-year time limit for recovery. Stamp duty is not included.
How it works
- Tell us the loanWho is paying whom, how much, when it is due, and whether there is interest.
- Answer the advocate's questionsWhether the money has already been paid, whether it is on demand or on a date, and whether cheques are also being given.
- PayPay the fee.
- Advocate drafts and signsOur panel advocate drafts the note and signs it on letterhead.
- Note is deliveredYou receive the note for execution on stamp paper, with the stamping note.
What to have ready
- ID and PAN of every partyAadhaar and PAN of each person signing; incorporation documents if an entity.
- Proof of payment (if you have it)Bank entry, transfer screenshot or cheque copy.
- Earlier IOU, chat or message recording the loan (if you have it)If any.
What this is based on
- Negotiable Instruments Act 1881, S.138 (1881)
- Limitation Act 1963 (1963)
- state Stamp Act
- Indian Stamp Act, 1899 (1899)Source: https://www.indiacode.nic.in/handle/123456789/2395